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PCS Customer Solutions’ Drive to benchmark performance

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Agenda

• Operational Performance

• Cost Performance Overview

• Driving to Benchmarks

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The Study Objectives & Methodology

Study Objectives

• Provide a qualitative and quantitative comparison to identify root cause drivers of results and identify areas of improvement in people, process, and technology.

• Strive to have an “apples for apples” comparison.

• Include significant wireless participants and strong performing companies with similar business model.

Methodology

• Thirteen companies provided data. (Wireless – SPCS, Cingular, Nextel, Verizon, SureWest; Non-Wireless: Charter Communications, Comcast Cable, DirecTV, Mazda, Stream International, IBM, Sprint LTD, Merrill Lynch).

• Data collected at an enterprise level, not by individual contact centers.

• Data received from all participants is mostly year end as of 12/31/01.

• Data received from participants has been validated through a series of phone conversations to ensure consistency and accuracy.

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•Core calls offered per subscriber have declined 27% over the past two years while the subscriber base has increased 157%.

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Core Offered Calls per Sub Supported Subscribers (000's)

•Core calls offered remains 29% higher than the wireless industry benchmark. Best in Class - 4.66 Benchmark - 5.37

Operational Performance - Offered Calls/Sub and Sub Growth

Page 5

NDASL/Clear Pay Call Volume Impact

•SPCS A&B credit class customers call less than the industry benchmark.

•NDASL/CP customers call 3 times as often as other SPCS customers.

•NDASL/CP was 32% of the 2001 year end sub base, but accounted for 54% of the call volume.

•Since NDASL/CP is 50%+ of 1Q02 gross adds, we must address their service strategy to reach benchmark.

2001 Handled Calls per Sub by Credit Class

3.70

7.41

2.85

10.74

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Core AHT

• Hold time is the primary opportunity for improvement in 2002.

Best in Class - 3.43 Benchmark - 5.87

Operational Performance - Core AHT

•Renewed focus on AHT in 2Q01 yielded a 17% decrease in AHT.

•Thrive drove to a 7% AHT reduction in 1Q02, compared to 4Q01.

•April 02 AHT continued to decline to 6:41, compared to 6:56 in 1Q02.

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Core Accessibility

•April accessibility improved further to 88%, exceeding both the 85% target and the benchmark.

•April results were driven by scheduling enhancements that better match labor supply with call demand.

Best in Class - 91% Benchmark - 86%

Operational Performance - Accessibility

•Accessibility has improved significantly since 2Q01.

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Core Accessibility And Service Level Improved

•Accessibility improvements have been in addition to service level improvements, not at the expense of service levels.

•The April service level of 68% was the highest level since 4Q00.

•Customer satisfaction exceeded the wireless industry average as of year end 2001.

•Customer Satisfaction

•70%•65%

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Agenda

• Operational Performance

• Cost Performance Overview

• Driving to Benchmarks

Page 10

Cost Performance Overview - CPSS

•CS CPSS has improved 32% since Q100, which is 12% of total CPSS.

•CPSS change of $1.03 is driven largely by AHT ($0.75) and Calls Offered per Sub ($0.33).

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Core CPSS Benchmark - $2.48 Best in Class - $1.81

•CS CPSS remains 29% above benchmark, after AVF improvements.

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Cost Performance Overview - Cost Per Minute

•Cost Per Minute has declined 7% since 1Q00, matching industry benchmark performance.

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Core Cost Per Minute Benchmark - $0.99 Best in Class - $0.73

•The 2002 AVF projects a $0.85 and $0.74 full year and year end cost per minute respectively.

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Agenda

• Operational Performance

• Cost Performance Overview

• Driving to Benchmarks

Page 13

Driving to Benchmarks - Calls Offered

•AVF drives a 6% improvement over full year 2001, despite an increasing percentage of NDASL/CP customers.

Benchmark - 5.37 Best in Class - 4.66

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•A 28% reduction is required to hit the benchmark by 4Q03.

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Driving to Benchmarks - AHT

•AVF is forecasting a 6% improvement over 4Q 2001.

• It will require an additional 15% improvement over 1Q02 to meet benchmark.

• Closing the AHT gap entirely in 2002 could reduce expenses by $59 million.

Benchmark - 5.87 Best in Class - 3.43

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Driving to Benchmark - Accessibility

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•April accessibility of 88% is approaching best in class.

Benchmark - 86% Best in Class - 91%

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Cost Performance Overview - On Track

•Benchmark cost per minute has been achieved.

•Cost per minute on track to reach best in class by 2Q03.

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Core Cost Per Minute Benchmark - $0.99 Best in Class - $0.73

•AVF includes a 13% CPSS improvement over 4Q01.

•An additional 18% improvement is required to reach benchmark by 4Q03.

•Calls per sub reductions critical in meeting CPSS goal.

Core CPSS Benchmark - $2.48 Best in Class - $1.81

Page 17

Benchmarking Action Plan Summary

• NDASL/ Clear Pay Service Strategy

• On Hold Reduction Task Force

• Systems Integration and Knowledge Management Improvements